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Court of AppealDismissedCivil Appeal No. 38 of 1995

Patrick Campbell Manyuira v Ann Muthoni Pertet

Court of Appeal of Kenya
12 March 1996
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The bottom line

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Kenya's Court of Appeal confirmed that a property buyer facing sharply rising prices can block the seller from selling to someone else, even without a formal damages promise.

What this practically means

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Executive summary

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The Court of Appeal at Nairobi (Akiwumi, Tunoi and Shah JJA) dismissed the appellant's appeal against an interlocutory injunction granted by Ole Keiwua J on 20 December 1994 in H.C.C.C. No. 3521 of 1994, restraining the appellant from alienating a maisonnette on L.R. No. 209/8878/5 pending trial. The parties had contracted for sale of the property at K.Shs.3,500,000, with a 10% deposit payable in two stages tied to sub-division of the parcel. Before completion of the sub-division, and before the completion date (within 90 days of new certificates of title being ready) had arrived, the appellant repudiated the agreement by demanding K.Shs.5,200,000 and declaring the transaction cancelled. The court held the respondent was in no breach and had a prima facie case with probability of success. It rejected the appellant's submission that agreed or calculable damages made an injunction unnecessary: the market price had risen so sharply within the month of the agreement that the respondent could not replace the property at the agreed price and would suffer irreparable harm. The first two Giella v Cassman Brown principles were satisfied and the judge's discretion was properly exercised. On the absence of an undertaking in damages, the court held the omission not fatal, and exercising its powers under section 3(1) of the Appellate Jurisdiction Act, recorded the respondent's undertaking to pay damages should she ultimately fail. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Adequacy of damages as a bar to interlocutory injunction

Holding

Where the agreed price can no longer buy a similar property, damages are not an adequate remedy and irreparable harm is established

Reasoning

The appellant argued that because damages were calculable, the court should treat them as adequate. The court rejected this: the price of the property had risen from Shs.3,500,000 to Shs.5,200,000 within the month of the agreement, so the respondent could not replace the property at the agreed price and would suffer irreparable harm. The first two Giella limbs were satisfied and the judge's discretion was properly exercised.

p. 2
02

Undertaking as to damages

Holding

Omission of an undertaking in damages is not fatal where a prima facie case exists; the appellate court may supply the undertaking itself

Reasoning

Order 39 rule 2(2) of the Civil Procedure Rules identifies the undertaking as a requirement a judge may consider, but its omission does not vitiate the injunction. Invoking its own powers under section 3(1) of the Appellate Jurisdiction Act, the Court of Appeal recorded the respondent's undertaking to pay damages should she ultimately fail.

p. 2

Legal principles established

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  • The three Giella v Cassman Brown principles govern the grant of an interlocutory injunction: prima facie case with probability of success, irreparable injury, and balance of convenience only if the court is in doubt
  • A party who is not in breach of a sale agreement cannot have the contract cancelled against them; repudiation by the vendor at a higher price supports an injunction restraining alienation
  • Failure of the applicant to give an undertaking in damages is not fatal to an interlocutory injunction where a prima facie case is established, and the appellate court may itself record the undertaking under section 3(1) of the Appellate Jurisdiction Act

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The appellant pays the respondent's costs of the appeal
  3. 3.The respondent's undertaking to pay damages should she eventually not succeed is recorded under section 3(1) of the Appellate Jurisdiction Act
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 3521 of 1994
Jurisdiction invoked
Appellate jurisdiction under the Appellate Jurisdiction Act (section 3(1) invoked in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Patrick Campbell Manyuira v Ann Muthoni Pertet", Case Analysis (1996). Civil Appeal No. 38 of 1995. Source: 

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.